During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). 1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. 2. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. 3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1). 4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer's patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. 5. A total of $965,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; medical seminars, $125,000; unrestricted transfers from the Evanston General Hospital Foundation, $75,000; and fees for medical transcripts. $55,000 6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. Note: Enter debits before credits. General Journal Transaction 01 Credit Cash Accounts and Notes Receivable Patient Service Revenue Debit 8,222,000 928,000 9,150,000 Journal entry worksheet Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year. Note: Enter debits before credits. Transaction Credit 03 General Journal Cash Contractual Adjustments Accounts and Notes Receivable Debit 5,365,000 2,857,000 8,222,000 Journal entry worksheet Record uncollectible accounts totaling $3,250 were written off. Note: Enter debits before credits. Transaction Credit General Journal Allowance for Uncollectible Accounts Accounts and Notes Receivable Debit 3,250 6(a) 3,250 B D E F Glory Record the allowance for uncollectible receivables was increased by $1,170. Note: Enter debits before credits. Debit Transaction 6(b) Credit General Journal Provision for Bad Debts Allowance for Uncollectible Accounts 1,170 1,170 b. Prepare the revenues, gains, and other support without donor restrictions section of Evanston General Hospital's statement of operations for the current year. Evanston General Hospital Statement of Operations (partial) For the Current Year Unrestricted Revenues, Gains, and Other Support: Net Patient Service Revenue $ 15,580,000 Less: Provision for Bad Debts 12,271,830 $3,308,170 Other Revenue 1,230,000 Total Revenues and Gains $ 4,538.170